Create, fill, and email an operating agreement for your LLC using our rich collection of templates. Tailor the specific template to your needs using extensive customization options. Share the ready document online using a variety of channels.
Using PandaDoc operating agreement templatesoffers convenience and reliability, as you can customize them to adhere to specific state regulations, saving time and ensuring legal compliance in establishing your LLC.
An operating agreement (OA) is a legal document that establishes the company’s control structure, sheds light on its activities and the rights and obligations of board members. In fact, this is an analog of the shareholders’ agreement, including a description of the relationships inside and outside the company, rules, policies, and regulations used to make financial, organizational, and functional decisions.
You can quickly get an LLC operating agreement tailored to different state regulations, set up your business and save time. Download the operating agreement form to any device with PandaDoc and print it at your convenience.
Some states do not require an OA. In others, it is necessary if several members are in the LLC. It allows you to effectively set up operations, protect your status, and sometimes avoid legal liabilities.
Financial institutions and investors often request a completed example of an operating agreement to open a current account or make an investment decision. Without it, your state’s laws will apply automatically. For instance, your company can be dissolved without your consent if the established leader dies.
In some states, the law equalizes members’ shares, even if their investments in the company are not comparable. But you will be able to retain control and flexibility because the members of your company’s founding board own a percentage, not shares.
A properly formulated OA will allow you to protect your rights better, build the foundation for day-to-day operation, gain access to a large, solvent market, developed infrastructure and profitable financing, and, under certain conditions, save on taxes.
Different types of LLCs have their specifics when drawing up operating agreements.
Use a multi-member LLC operating agreement template when establishing an LLC with multiple members to define their respective rights, responsibilities, and operational guidelines.
Multi-Member LLC Operating Agreement Template
Used 4,872 times
Ensure that your newly formed LLC is run the right way by having a multi-member operating agreement in place.
Use a single-member LLC operating agreement template when establishing an LLC with only one member to outline the operational procedures and responsibilities unique to single-member ownership.
Basic Single Member LLC Operating Agreement
Used 4,920 times
Are you required to uphold your limited liability corporation status in accordance with state law? If the business is sued, the owner’s assets may be safeguarded by this agreement.
Use a 50/50 LLC operating agreement template when establishing an LLC with two equal partners
50/50 LLC Operating Agreement Template
Used 4,872 times
This free 50/50 LLC Operating Agreement template for businesses with equal ownership.
Use a manager-managed LLC operating agreement template when establishing an LLC where designated managers, rather than all members, are responsible for the day-to-day operations and decision-making of the company
Member-Managed LLC Operating Agreement Template
Used 4,919 times
A manager is chosen by the firm owners to oversee day-to-day operations in a manager-managed LLC. Use this Member-Managed LLC Operating Agreement Template right away.
In the five US jurisdictions, the formulation of the operating agreement is strictly required by law before establishing an LLC.
Let us consider the main components of a typical operating agreement.
Here you must specify the name, date, period of registration, and legal address of the company. Include the names of all founding members and the states in which you seek to operate.
In this part, you describe the voting procedure adopted and whether voting rights are transferable. Be sure to specify how new members’ rights will be considered. Keep in mind to denominate:
In this section, indicate the higher managerial positions, terms of office, the procedure for election to an administrative post. Write clearly the obligations and rights to conclude contracts and compensation for work.
State contributions and correlation with ownership shares and return of investment procedure.
This section should specify how revenues will be accounted for and distributed.
This part must establish salary amounts and explain how expenses will be accounted for and whether individual members can be compensated additionally. It can also specify how voting will take place to resolve these issues.
Here you denominate:
This section describes how and when an LLC may cease operations. It indicates who makes the decision, describes the conditions for automatic dissolution, and the asset liquidation and liability payments procedures.
In this part, you need to describe the information that, in your opinion, is subject to non-disclosure. It is important to note how confidentiality will be protected and what sanctions are provided for NDA violations. Some operating agreement examples also list exceptions.
This section may contain conditions for mergers and acquisitions, arbitration, etc.
You can employ our free operating agreement template to make it less challenging to create the document. There are several in our database, considering the nuances typical for many business situations. We have used a simple, accessible language so you can save time.
All the LLC’s founding members must sign it, and a copy must be kept along with other primary legal documents. The registered agent must keep the original.
Understanding legal terms in an operating agreement will help you to ensure clarity and enforceability when writing your template. Here are some common legal terms you might find in an operating agreement:
Operating Agreement Template
Used 5,607 times
An Operating Agreement is an agreement amongst an LLC’s members to govern it’s business and financial and managerial rights.
Member-Managed LLC Operating Agreement Template
Used 4,919 times
A manager is chosen by the firm owners to oversee day-to-day operations in a manager-managed LLC. Use this Member-Managed LLC Operating Agreement Template right away.
Real Estate LLC Operating Agreement
Used 5,048 times
The members of the real estate limited liability corporation have signed this operational agreement. Use this Real Estate LLC Operating Agreement and make any necessary changes.
LLC Operating Agreement Template
Used 4,872 times
Streamline operations to ensure you’re running your business smoothly with a free LLC Operating Agreement Template.
An operating agreement is a legal document that describes the rules related to business operations, property, and financial decisions of the LLC being organized. While only some states require it, businesses are at risk without such an agreement. The document is valid when applying for loans. Some financial applications require it unconditionally. Free operating agreement might come in handy for potential investor review. It minimizes the occurrence of many problems with your business.
The operating agreement should contain details regarding the creation, capital, financial contributions, management, and conditions to be followed when transferring or dissolving the company: Personal data of founding parties; Ownership; Responsibilities of the administrative personnel; Employee roles; Operations and profit distribution rules; Investment data; Actions in case of unforeseen circumstances and dissolution.
Creating an operating agreement is relatively easy. To do this, you can fill out a manageable number of pages with simple terms. It is enough to find a suitable operating agreement free template on our website, which other people successfully use. Free operating agreement templates can be downloaded after registration. You can edit templates to your taste and access the online editor by paying for a subscription.
